Early Bird I Monday November 25th 2024

MP’s challenge banks on rural-urban lending gap, Southland farmers granted more time for environment plans, and rural tourism takes the top award at the Rural Women New Zealand Business Awards. Welcome to Proud Country's Early Bird - The top things you need to know that impact rural New Zealand delivered to you by 5am, because who doesn’t need better chat beyond the weather!   MP’s challenge banks on rural-urban lending gap Rural lending took centre stage at Parliament last week as Westpac executives underwent intense questioning about their treatment of rural customers. The hearing revealed major concerns about the differences between rural and urban lending rates. New Zealand's leading banks are drawing criticism for their urban-focused growth while rural communities raise alarm about higher interest rates on farm loans. During the hearing, Westpac chair Catherine McGrath defended the bank's higher rural lending margins. She told committee members these rates reflect added risks from weather events and changing market conditions. McGrath maintained that despite no mandatory farm auctions occurring since 2016, rural lending continues to demand additional risk management. The inquiry also examined climate requirements for farmers. ACT MP Mark Cameron questioned why New Zealand dairy farmers must meet tougher environmental targets than their Australian counterparts. McGrath insisted these measures aim to maintain market access, particularly in regions like the European Union where environmental credentials matter. National and ACT MP’s challenged the banking sector's claim of robust market competition. They argued that while urban homeowners can negotiate better rates, rural customers have limited options. McGrath countered by citing the role of mortgage brokers in maintaining competitive rates. This marked the fourth major bank to face the committee, following earlier meetings with ANZ, ASB, and Rabobank. The inquiry continues next month as politicians examine ways to ensure equitable treatment for rural borrowers.   Southland farmers granted more time for environment plans Southland farmers have received welcome news with the Government announcing an eighteen-month extension for submitting farm environment plans.  Agriculture Minister Todd McClay announced Cabinet's move to align regional requirements with national timelines, extending the deadline until mid-2026. The change addresses mounting concerns about the original end-of-month requirement under the Southland Water and Land Plan. Federated Farmers Southland president Jason Herrick called the announcement an absolutely fantastic result for regional landowners, who have weathered a record wet growing season. The timing adjustment allows Environment Southland to create workable guidelines that align with upcoming National Policy Statement for Freshwater changes. Environment Southland chairman Nicol Horrell called it a common-sense solution, noting the value of risk-based farm environment plans in achieving environmental improvements. He urged farmers to continue gathering information for their farm environment plans, while announcing that regional authorities would deliver catchment-specific details to aid the planning process. The decision follows October's nationwide delay of the freshwater farm plan system, which underwent review to ensure it remained cost-effective and practical for agricultural communities. The extension allows time for updated national regulations, expected in early 2025, while maintaining momentum on environmental management across Southland's agricultural sector.   Rural tourism takes the top award at the Rural Women New Zealand Business Awards A Coromandel tourism venture has earned the highest recognition at the NZI Rural Women New Zealand Business Awards, highlighting the innovative nature of rural enterprises. Catherine Ward, creator of the Pahi Coastal Walk, received the Supreme Award at a crowded ceremony in Wellington, marking a remarkable achievement in rural business excellence. The three-day walking experience emerged from humble origins when Ward sought a new direction after her three teenagers left their Port Jackson family farm. What began as a modest venture with husband Zander has evolved into a catalyst for local economic growth.  Rural Women New Zealand National President Sandra Matthews said the venture has had an extraordinary community impact. The growing enterprise now employs numerous local women, creating meaningful work opportunities in the rural setting. This expansion has triggered a ripple effect throughout the region, enhancing income streams for nearby bike rental operations, dining establishments, and local artisans. The awards attracted unprecedented entry numbers this year, revealing the remarkable diversity of women-led rural enterprises across Aotearoa. Christina Chellew from NZI said the exceptional quality of nominees made selecting an overall winner particularly challenging. Ward's achievement exemplifies how rural innovation can transform communities. Her walking trail venture demonstrates the ability of regional businesses to create sustainable economic opportunities while maintaining strong connections to the land and local area.   State farmer reports promising outlook New Zealand's largest farming organisation, Pāmu, has announced a big improvement in its financial outlook, and now anticipates net operating earnings between $25 million and $40 million for the year ending June 2025. Chief Executive Mark Leslie attributes this to multiple factors. The dairy sector leads the charge with Fonterra's revised milk rates reaching $9 to $10 for conventional milk and nearly $12 for organic production. Meanwhile, American markets maintain robust demand for beef, though sheep meat returns remain under long-term averages. The organisation has also launched an innovative pathway to farm ownership, offering various contracts across four of its dairy operations. These arrangements include share milking and contract milking options, and are creating new opportunities for emerging farmers. Leslie says the company's evolving strategy extends beyond traditional farming. Recent ventures into horticulture tell a compelling story, with avocado harvests exceeding targets and a new six-hectare blueberry operation in Northland advancing toward its inaugural harvest next year. Environmental innovation maintains centre stage at Pāmu's operations. Their new methane testing centre near Taupō enables measurement of feed intake and emissions, advancing the development of climate-friendly livestock genetics, and will accelerate the advancement of emission reduction technologies.   Landmark research draws international attention   A remarkable turnout at Massey University has highlighted the growing interest in New Zealand's largest agricultural research initiative. More than 200 international and local agricultural minds gathered on Thursday to examine the results emerging at the Whenua Haumanu research location. The nationwide programme, now entering its third year, aims to unlock real-world advantages that working land can deliver. Massey University leads seven-year project, with funding provided through the Ministry for Primary Industries sustainable farming fund. Research leader Professor Danny Donaghy says their work examines how various land management methods influence everything ranging through animal welfare to end market results. The research team monitors multiple elements including innovative grazing methods, examining animal health outcomes, measuring land condition changes, and tracking meat and milk quality. Their work includes detailed analysis across numerous agricultural areas, creating a complete understanding of modern agricultural methods. International scientists and research teams travelled thousands of miles to attend, arriving at Massey University to witness the innovative work underway from as far as Asia, South America and Australia.  See omnystudio.com/listener for privacy information.